USA – Muhasebe News

Producer Price Index for final demand in the U.S. increased 0.7% in January

MuhasebeNews — Thu, 23 Feb 2023 07:58:10 +0000

USA PRODUCER PRICE INDEXES – JANUARY 2023

The Producer Price Index for final demand increased 0.7 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported. Final demand prices declined 0.2 percent in December 2022 and advanced 0.3 percent in November. On an unadjusted basis, the index for final demand rose 6.0 percent for the 12 months ended January 2023.

In January, a 1.2-percent rise in prices for final demand goods led the advance in the final demand index. Prices for final demand services also moved higher, increasing 0.4 percent.

The index for final demand less foods, energy, and trade services rose 0.6 percent in January 2023, the largest advance since moving up 0.9 percent in March 2022. For the 12 months ended in January 2023, prices for final demand less foods, energy, and trade services increased 4.5 percent.

Final Demand

Final demand goods: The index for final demand goods moved up 1.2 percent in January, the largest increase since rising 2.1 percent in June 2022. Most of the January advance is attributable to a 5.0-percent jump in prices for final demand energy. The index for final demand goods less foods and energy increased 0.6 percent. In contrast, prices for final demand foods fell 1.0 percent.

Product detail: Nearly one-third of the January rise in the index for final demand goods can be traced to prices for gasoline, which increased 6.2 percent. The indexes for residential natural gas, diesel fuel, jet fuel, soft drinks, and motor vehicles also moved higher. Conversely, prices for fresh and dry vegetables decreased 33.5 percent. The indexes for residual fuels and for basic organic chemicals also declined.

Final demand services: The index for final demand services advanced 0.4 percent in January, the same as in December. Over 80 percent of the broad-based increase in January is attributable to prices for final demand services less trade, transportation, and warehousing, which rose 0.6 percent. Margins for final demand trade services moved up 0.2 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services also advanced 0.2 percent.

Product detail: A major factor in the January rise in prices for final demand services was the index for hospital outpatient care, which jumped 1.4 percent. The indexes for automobiles and automobile parts retailing; health, beauty, and optical goods retailing; portfolio management; chemicals and allied products wholesaling; and airline passenger services also moved higher. In contrast, margins for fuels and lubricants retailing fell 17.5 percent. Prices for long-distance motor carrying and for securities brokerage, dealing, and investment advice also declined.

Source: The U.S. Bureau of Labor Statistics
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

In December, U.S. private sector job growth far above predictions; increased by 235,000 jobs

MuhasebeNews — Mon, 09 Jan 2023 08:15:33 +0000

January 9, 2023

Private sector employment in the U.S. increased by 235,000 jobs in December and annual pay was up 7.3 percent year-over-year, according to the December ADP® National Employment ReportTM produced by the ADP Research Institute® in collaboration with the Stanford Digital Economy Lab (“Stanford Lab”).

The jobs report and pay insights use ADP’s fine-grained anonymized and aggregated payroll data of over 25 million U.S. employees to provide a representative picture of the labor market. The report details the current month’s total private employment change, and weekly job data from the previous month. ADP’s pay measure uniquely captures the earnings of a cohort of almost 10 million employees over a 12-month period.

“The labor market is strong but fragmented, with hiring varying sharply by industry and establishment size,” said Nela Richardson, chief economist, ADP. “Business segments that hired aggressively in the first half of 2022 have slowed hiring and in some cases cut jobs in the last month of the year.”

Job resurgence was seen in the last two months of 2022 led by consumer-facing service industries. Hiring was strong across small and medium establishments while large establishments saw a drop in employment of 151,000 jobs.

December ushered in the largest decline in pay growth for job stayers in the three-year series history. Leisure and hospitality; trade, transportation and utilities; and information sectors had the sharpest declines in pay gains. Job changers’ pay growth also fell to the lowest level in 10 months.

Source: ADP Research Institute®
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

USA Stock Market closed on Wednesday

MuhasebeNews — Tue, 04 Dec 2018 15:30:58 +0000

USA Stock Market will be closed on Wednesday, December 5, 2018 to honor former president George H.W. Bush, who died last Friday.

President Donald Trump has designated December 5, 2018 as national day of mourning.

Trump ordered American flags to be flown at half-staff for 30 days to honor Bush.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

What are the Meanings of Legally Obligated and Limited Taxpayer in Turkey?

MuhasebeNews — Mon, 19 Mar 2018 16:00:56 +0000

1- WHAT IS THE MEANING OF LEGALLY OBLIGATED?
Companies whose registered office [1] or business center [2] is in Turkey will be subjected to tax through their incomes that they gain both in Turkey and abroad.

If registered office or business center of institutions listed below is in Turkey, they will be subjected to tax as legally obligated.
    1.1- Company with share capital,
    1.2- Cooperatives,
    1.3- State-owned economic enterprise,
    1.4- Commercial enterprise belonging to associations or foundations,
    1.5- Joint ventures,

Sample-1: Fontaine citizen of France,
– He was employed on 20 March 2010 in Turkey and then he went on leave on 15 May 2016. (6 years 1 month 26 days).
– He came back to Turkey on 20 October 2016 and he kept at his job until 31 December 2016. (2 months 2 days).
Liabilities of Fontaine for 2016 are explained below.
Explanation-1:
Fontaine is legally obligated.
Even though he stayed in Turkey less than 6 months separately, the duration of his staying for a calendar year is more than 6 months.
Legal Basis-1:
Article related to “Legally Obligated” of the Income Tax Law is stated below;
Persons listed below are regarded as domiciled in Turkey and they are considered as legally obligated:
1- Person whose residence is in Turkey. (Residence is a place stated in article 19 and its consecutive articles of the Civil Law.)
2- Person who persistently resides in Turkey more than 6 months in a calendar year. (Provisional leaving does not affect time of settlement in Turkey.)

2- WHAT IS THE MEANING OF LIMITED TAXPAYER?
Companies whose registered office and business center are not in Turkey will be subjected to tax through their incomes that they gain only in Turkey.

If registered office and business center of institutions listed below are not in Turkey, they will be subjected to tax as limited taxpayer.
2.1- Company with share capital,
    2.2- Cooperatives,
    2.3- State-owned economic enterprise,
    2.4- Commercial enterprise belonging to associations or foundations,
    2.5- Joint ventures,

3- CORPORATE INCOME CONSISTS OF INCOMES AND REVENUES STATED BELOW IN LIMITED LIABILITY TO TAX;
3.1- Commercial incomes gained through businesses made with foreign institutions whose registered office or business center in Turkey or through these kinds of institutions.
(Even though they carry abovementioned conditions, if they gain incomes through goods purchased in Turkey for export and they send them to abroad without selling them in Turkey, their incomes will not be regarded as obtained in Turkey. Selling in Turkey means that either customer or supplier or both of them should be in Turkey or sales agreement should be made in Turkey.)
(In line with Tax Procedure Law provisions numbered 04.01.1961 – 213)
3.2- Incomes gained in Turkey from agricultural enterprise,
   3.3- Self-employment earnings gained in Turkey ,
   3.4- Revenues gained by renting estate and assets and rights in Turkey,
     3.5- Income from moveable capitals gained in Turkey
3.6- Other incomes and revenues gained in Turkey.

Sample 2: Mr. John citizen of USA,
– He was in Turkey between the dates of 01.10.2015-10.12.2016 and he gained commercial income from commercial activities that he carried out in Turkey and America in that period. (1 year 2 months 10 days)
– By 2015, he gained 100.000 TL in Turkey and 200.000 TL in USA
– By 2016, he gained 300.000 TL in Turkey and 500.000 TL in USA.
The income being subjected to tax is explained below.
Explanation -2:
Mr. John resided in Turkey less than 6 months in calendar year 2015, he was regarded as limited taxpayer.
During that period of time, his income gained in Turkey and valuing at 100.000 TL would be subjected to tax in Turkey.
However, by 2016 he resided in Turkey more than 6 months, so he will be regarded as legally obligated.
Total amount of income is 800.000 TL (300.000+500.000), which he gained both in USA and in Turkey, and income tax would be calculated through that amount.
If a taxpayer is subjected to tax in the ratio of income that he gained in America, it can be deducted from the tax calculated in Turkey.
Legal Basis-2:
Article related to “Legally Obligated” of the Income Tax Law is stated below;
Persons listed below are regarded as domiciled in Turkey and they are considered as legally obligated:
1- Person whose residence is in Turkey. (Residence is a place stated in article 19 and its consecutive articles of the Civil Law.)
2- Person who persistently resides in Turkey more than 6 months in a calendar year. (Provisional leaving does not affect time of settlement in Turkey.)

[1] Registered Office: It is an office stated in law of establishment, regulations, main status or agreements of institutions being subjected to tax.
[2] Business Center: It is a center where all businesses are gathered virtually and managed.

Source: Corporate Tax Law Numbered 5520 (Article 3)

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Foreign Trade Statistics of Turkey, April 2017

MuhasebeNews — Mon, 05 Jun 2017 06:50:17 +0000

Exports and imports increased by 7.4% and 9.9%, respectively
According to the provisional data, produced with the cooperation of the Turkish Statistical Institute and the Ministry of Customs and Trade, in April 2017; exports were 12 billion 839 million dollars with a 7.4% increase and imports were 17 billion 784 million dollars with a 9.9% increase compared with April 2016.

Foreign trade deficit increased by 16.7%
In April 2017 foreign trade deficit was 4 billion 945 million dollars with a 16.7% increase compared with April 2016.

In April 2017, exports coverage imports was 72.2% while it was 73.8% in April 2016.

Seasonally and calendar adjusted exports decreased by 2.7%
Seasonally and calendar adjusted exports decreased by 2.7% while imports increased 1.6% compared with previous month. Calendar adjusted exports and imports increased by 10.5% and 13.2%, respectively compared with April 2016.
Exports to the European Union increased by 2.2%
As compared with the same month of the previous year, exports to the EU-28 increased by 2.2% from 5 billion 652 million dollars to 5 billion 779 million dollars. The proportion of the EU countries was 45% in April 2017 while it was 47.3% in April 2016.

The main partner for exports was Germany
In April 2017, the main partner country for exports was Germany with 1 billion 140 million dollars. The country was followed by UAE with 1 billion 21 million dollars, Iraq with 857 million dollars and the United Kingdom with 737 million dollars.

The top country for imports was China
In April 2017, the top country for Turkey’s imports was China with 1 billion 647 million dollars. The country was followed by Germany with 1 billion 629 million dollars, Russia with 1 billion 495 million dollars and USA with 980 million dollars.
Ratio of exports of high-tech products in manufacturing industries was 3.1%
Foreign trade by technology intensity covers the manufacturing industries’ products in classification of ISIC Rev.3. According to the ISIC Rev.3, the ratio of manufacturing industries products in total exports was 94.1% in April. The ratio of high-technology products in manufacturing industries was 3.1%. The ratio of medium-high-technology products in manufacturing industries’ products was 33.6%.

Ratio of imports of high-tech products in manufacturing industries was 15.1%
The ratio of manufacturing industries’ products in total imports was 80.5%. The ratio of high-technology products in manufacturing industries’ products was 15.1% in April 2017. The ratio of medium-high-technology products in manufacturing industries’ products was 42.8%.

Foreign Trade Statistics of Turkey, March 2017

MuhasebeNews — Fri, 28 Apr 2017 07:45:05 +0000

Exports and imports increased by 13.6% and 6.9%, respectively
According to the provisional data, produced with the cooperation of the Turkish Statistical Institute and the Ministry of Customs and Trade, in March 2017; exports were 14 billion 496 million dollars with a 13.6% increase and imports were 18 billion 988 million dollars with a 6.9% increase compared with March 2016.

Foreign trade deficit decreased by 10.3%
In March 2017 foreign trade deficit was 4 billion 492 million dollars with a 10.3% decrease compared with March 2016.

In March 2017, exports coverage imports was 76.3% while it was 71.8% in March 2016.

Seasonally and calendar adjusted exports increased by 3.7%
Seasonally and calendar adjusted exports and imports increased by 3.7% and 2.2%, respectively compared with previous month. Calendar adjusted exports and imports increased by 13.5% and 7.1%, respectively compared with March 2016.
Exports to the European Union increased by 8.1%
As compared with the same month of the previous year, exports to the EU-28 increased by 8.1% from 6 billion 267 million dollars to 6 billion 775 million dollars. The proportion of the EU countries was 46.7% in March 2017 while it was 49.1% in March 2016.

The main partner for exports was Germany
In March 2017, the main partner country for exports was Germany with 1 billion 321 million dollars. The country was followed by UAE with 1 billion 28 million dollars, Iraq with 906 million dollars and the United Kingdom with 874 million dollars.

The top country for imports was Germany
In March 2017, the top country for Turkey’s imports was Germany with 1 billion 783 million dollars. The country was followed by China with 1 billion 770 million dollars, Russia with 1 billion 599 million dollars and the USA with 952 million dollars.

Ratio of exports of high-tech products in manufacturing industries was 3.1%
Foreign trade by technology intensity covers the manufacturing industries’ products in classification of ISIC Rev.3. According to the ISIC Rev.3, the ratio of manufacturing industries products in total exports was 94.4% in March. The ratio of high-technology products in manufacturing industries was 3.1%. The ratio of medium-high-technology products in manufacturing industries’ products was 33.9%.

Ratio of imports of high-tech products in manufacturing industries was 13.9%
The ratio of manufacturing industries’ products in total imports was 81%. The ratio of high-technology products in manufacturing industries’ products was 13.9% in March 2017. The ratio of medium-high-technology products in manufacturing industries’ products was 42.2%.

Domino’s Pizza Has Risen Its Profit!

MuhasebeNews — Thu, 27 Apr 2017 15:01:39 +0000

Domino’s Pizza revealed that it has raised its profit 37.4% in the first quarter.

The executives claimed that they have raised their profits with higher demand in the USA, where Domino’s has the biggest source of store revenue, and more revenue from franchisees.

In addition to that, net income rose to 62.5 million dollars, or 1.26 dollar per share.

Source: Euronews

The World’s Billionaires List 2017

MuhasebeNews — Wed, 05 Apr 2017 07:03:11 +0000

The World’s Billionaires list 2017 has been publish. In the list, Bill Gates takes the lead with Microsoft and he is followed by Warren Buffet and Jeff Bezos respectively. Surprisinglyi Mark Zuckerberg ,founder of Facebook, is placed on the fifth place.

Name Source Country

1.Bill Gates Microsoft USA

2.Warren Buffet Berkshire Hathaway USA

3.Jeff Bezos Amazon.com USA

4.Amancio Ortega Zara Spain

5.Mark Zuckerberg Facebook USA

6.Carlos Slim Helu Telecom Mexico

7.Larry Ellison Software USA

8.Charles Koch Diversified USA

9.David Koch Diversified USA

10.Michael Bloomberg Bloomberg LP USA

Source: Forbes

U.S. International Trade Deficit in Goods and Services Decreases in February 2017

MuhasebeNews — Tue, 28 Feb 2017 10:00:10 +0000

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that the goods and services deficit was $43.6 billion in February. February exports were $192.9 billion, $0.4 billion more than January exports. February imports were $236.4 billion, $4.3 billion less than January imports.

Source: bea.gov